Maritime Administration: Stronger Management Controls Needed Over Vessels in Title XI Custody

Highlights

Pursuant to a congressional request, GAO examined the adequacy of the Maritime Administration's (MARAD) management controls for the custody, maintenance, and sale of vessels acquired by the Federal Ship Financing Program, also known as the Title XI Program.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
Department of Transportation	To help ensure that the Title XI program is administered efficiently and effectively and provides reasonable assurance that government resources are protected against fraud, waste, misappropriation, and mismanagement, the Secretary of Transportation should direct the Administrator, MARAD, to develop detailed formal policies and procedures to guide decisionmaking regarding the custody, maintenance, and sale of Title XI vessels.	Closed – Implemented The Maritime Administration issued a revised comprehensive policy paper outlining the objectives, policies, and procedures of the Title XI program in December 1992.
Department of Transportation	To help ensure that the Title XI Program is administered efficiently and effectively and provides reasonable assurance that government resources are protected against fraud, waste, misappropriation, and mismanagement, the Secretary of Transportation should direct the Administrator, MARAD, to identify and document significant information and program activities concerning decisions affecting the custody, maintenance, and sale of individual vessels.	Closed – Implemented A revised MARAD policy paper providing instructions regarding documenting significant activities was issued in December 1992.
Department of Transportation	To help ensure that the Title XI Program is administered efficiently and effectively and provides reasonable assurance that government resources are protected against fraud, waste, misappropriation, and mismanagement, the Secretary of Transportation should direct the Administrator, MARAD, to develop indicators to allow MARAD officials and others to better monitor the program's performance.	Closed – Implemented MARAD identified certain statistical information it collects as performance indicators and included such in its policy paper issued in December 1992.

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